Alice bought a small bakery business. It was surveyed by George, for Happy Homes Building Society, which provided Alice with the mortgage. Alice paid Happy Homes for a summary report from George. This stated that there were no major structure problems and that the premises were worth the asking price. It concluded: “This report is for valuation purposes only and will not give rise to any legal liability.” Alice contracted with Industrial Kitchen Fitters Ltd. (IKF) to refit the kitchen. They installed a new oven manufactured by Cinders Inc.

On moving in, Alice discovered severe and large-scale dry rot when she fell through a storeroom floor and broke her leg. Her injuries and the eradication of the dry rot delayed the opening of the premises for several months.

A week after the business eventually opened, the new oven malfunctioned. As a result, a wedding cake was badly burnt, leading to a claim for damages for break of contract against Alice, by the bride’s father. IKF have gone out of business.

Applying U. S. law, advise Alice for possible neglience or strict liability tort law